Creative circularity: how LVMH is turning recycling and repairs into a revenue stream

LVMH has generated 500 million euros in revenue from recycling and repairs. This represents ten million products repaired, refilled, or taken back in 2025 across all of the group's houses. It is the first quantified assessment of the gains achieved under its Corporate Social Responsibility (CSR) policy and Life 360 programme.

These figures were unveiled during a conference at the Cheval Blanc hotel, attended by Hélène Valade, environment development director at LVMH, and Christelle Capdupuy, sustainable development director at Louis Vuitton.

The 500 million euros from repairs and refills remain modest on a group-wide scale, accounting for 0.6 percent of turnover. However, the figure is symbolically significant. It materialises the transition to a circular model in monetary terms and aims to demonstrate that creative circularity and profitability are not mutually exclusive.

Additional revenue generated by repair, refill, and product take-back services

LVMH now precisely quantifies what it gains from repairing items rather than selling new ones. In 2025, repair, refill, and take-back services alone generated 500 million euros in additional revenue from ten million repaired products.

Specifically, the ten million products involved were either repaired in workshops, equipped with a refill system, or taken back by the houses. At Louis Vuitton, client advisors are trained to discuss repairs, and information on the origin of raw materials is available on the website or in-store.

Among the drivers of this profitable circularity, refills hold a unique position. The example of a cream with a patented design, shown during the conference, illustrates the strategy: the refillable object can become as aesthetically pleasing as a new product, if not more so.

“‘New’ does not mean ‘brand new’,” summarises Hélène Valade, environment development director at LVMH. “It could be a magnificent bag that has been completely reworked to give it a new look. I think there is a real need among some consumers for this new service.”

Finance's role in creative circularity: a gradual business model shift

Valade explains that finance has become a major ally. LVMH's 75 chief financial officers now work with sustainable development managers. At Céline, the cost of carbon is integrated into investment decisions, while at Dior, the transition plan is subject to financial planning. This convergence allows for the reporting of environmental data covering 99.9 percent of the group's financial scope.

LVMH is also learning to quantify the cost of inaction. Consuming less water and using less energy immediately results in savings. Furthermore, the group reports that 41 percent of the materials used in its products and packaging are now sourced from recycling.

Items made from deadstock or recycled materials do not sell for less, but sometimes sell faster. A cotton bag made from 3,000 linear metres of unused stock sold out as a limited edition, becoming 'highly desirable' due to its rarity. Similarly, the fashion show that recycled unsold items, realised by Kevin Germanier, proved that circularity could be a source of profitable creativity.

Creative circularity: a tool for loyalty and securing brand value

One benefit that LVMH has not yet converted into euros remains: consolidating trust in its brands. “This is the bet I have been making for 20 years,” states Valade. “Behind all of this, there are very strong societal shifts. If a company does not embrace them, it is not able to embody this responsibility at the product level.”

“Circularity thus becomes an ingredient for loyalty. A customer who has trust will return for another purchase. Repair is therefore not a cost centre, but a driver of brand preference,” concludes Christelle Capdupuy, sustainable development director at Louis Vuitton.

This article was translated to English using an AI tool.

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